Release: #4597-02 (CFTC Docket 02-04)
For Release: January 15, 2002
INTERNET TRADING SYSTEM PROMOTER CHARGED WITH COMMODITY FRAUD
CFTC Alleges Michael Radcliffe Made False Claims Concerning Profits Generated By His Commodity Trading System
WASHINGTON, D.C. -- The Commodity Futures Trading Commission (CFTC) announced today the filing of an administrative action against Michael Radcliffe (Radcliffe) of Mosheim, Tennessee. The CFTC complaint charges that, from 1997 through September 2001, Radcliffe fraudulently promoted a commodity trading system over his Internet web site, www.mikeysmethods.com. The web site allegedly included false claims that Radcliffe personally made "good profits" by trading with his system, and that he made his living through such trading. Radcliffe's trading system was contained in a trading manual entitled, Mikey's Methods to Money or Madness.
The CFTC complaint specifically alleges that Radcliffe's web site claimed that "Mikey's Methods helps me trade well enough so that I don't need to work. Isn't that your objective as well?" According to the complaint, such claims were false because during the relevant period, Radcliffe sustained aggregate net trading losses and his personal futures trading did not provide a living for him. The complaint further alleges that Radcliffe appears to have earned his living, in substantial part, by selling books that erroneously claimed that he earned a living trading with his system.
A public hearing has been ordered to determine whether the allegations are true and, if so, what sanctions are appropriate and in the public interest. Possible sanctions include a cease and desist order, restitution to defrauded customers, civil monetary penalties, trading prohibitions, and registration revocations, suspensions or restrictions.
A copy of the CFTC complaint can be found at http://www.cftc.gov/. In addition, see the CFTC's Consumer Alert entitled, Beware of Websites Selling Commodity Trading Systems that Guarantee High Profits with Minimal Risks at http://www.cftc.gov/cftc/cftccustomer.htm#advisor.
Media Enforcement Contact:
Susan Bovee, Associate Director
Division of Enforcement, (202) 418-5409
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